Yesterday’s signals were not triggered, as there was no bullish price action when 1.2920 was reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm London time today only.
Long Trade Idea
⦁ Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2762.
⦁ Put the stop loss 1 pip below the local swing low.
⦁ Move the stop loss to break even once the trade is 25 pips in profit.
⦁ Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
Short Trade Idea
⦁ Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2924.
⦁ Put the stop loss 1 pip above the local swing high.
⦁ Move the stop loss to break even once the trade is 25 pips in profit.
⦁ Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
GBP/USD Analysis
I wrote yesterday that as long as the price held above 1.2920, the picture looked weakly bullish. This was a good call as that price performed well as yesterday’s pivotal point.
The technical picture is more bearish now that the price has got established below that level, although the resistance level has had to be adjusted slightly, to 1.2924.
The short-term price action is also bearish, so it looks as if the price will fall further still, but as always with this pair, much is likely to be determined by price action early in the London session.
I would be prepared to take a short bias here if the price retraces to 1.2924 and rejects that level firmly with bearish price action.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.